McDonald's Set For A Bullish Expansion In The Philippines

Customers eat dinner at a McDonald's store in Beijing, China January 9, 2017. McDonald's is set to expand further in the Philippines by opening more stores.
REUTERS/Jason Lee

When it comes to expansion, McDonald's (NYSE: MCD) in the Philippines isn't done yet, not if Golden Arches Development Corporation (GADC) is in charge. The fast food company is even set for a bullish expansion in the country.

"We are bullish. It seems to me the consumer market is getting stronger in the Philippines," Business World Online reported GADC founder George Yang as saying.

Higher Than Average Store Openings In 2017

Meanwhile, GADC President and CEO Kenneth Yang had also revealed recently that the company is prepared to allocate as much as P2 billion to the opening of 45 new McDonald's stores across the country in 2017. This plan exceeds most of its new store openings in recent years. In fact, the average has only been 30 to 40 stores previously.

Of the new stores opening in 2017, 80 percent of them will be developed throughout Metro Manila as well as other areas in Luzon. Meanwhile, GADC is also eyeing expansion in both Visayas and Mindanao with branches scheduled to open in Dumaguete, Antique and Sorsogon by the end of March.

McDonald's opened its 500th store in 2016. It is located along the Tagaytay-Calamba road. In total, the company expects to have 520 branches by the end of 2017.

McDonald's has been enjoying double-digit growth

GADC is determined to enjoy a double-digit growth this year. The Philippines happens to be leading in the McDonald's market when it comes to store count around Greater Asia. it has enjoyed a 14 percent growth across its system-wide sales and 7 percent increase in its same-store sales.

Because of this, McDonald's recently achieved a 30 to 40 percent growth in net income, with the total reaching as much as P1.2 billion after tax. Even with several fast-food brands in the Philippines, GADC believes that McDonald's continues to have a unique edge.

"What I can say is that for the same price, we can say we offer fresher, hotter and better quality products at a nice environment where you can sit comfortably with friends. That’s our advantage," Kenneth Yang also remarked.

What do you think about McDonald's bullish expansion in the Philippines? Let us know in the comments section below.

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